Multiple choice

A took a certain sum of money from B as a loan at the rate of 7\% simple interest per annum. A lends the same amount to C at simple interest of 12\% per annum. If at the end of 7 years A makes a profit of Rs 1050, then what amount did C borrow from A?

  1. Rs 3200

  2. Rs 3000

  3. Rs 3500

  4. Rs 3050

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A borrows money at 7% simple interest and lends it at 12% simple interest, earning the difference of 5% per year. Over 7 years, this difference amounts to 35% of the principal (5% × 7 = 35%), which equals Rs 1050. Solving 0.35P = 1050 gives the principal as Rs 3000, which is the amount C borrowed from A.

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